India’s new central bank governor cut interest rates for the first time in almost five years on Friday to help spur a slowing economy as global risks intensify.

Discover the RBI's 25 basis points repo rate cut to 6.25%, its impact on economic growth, credit support, and inflation projections. Learn how the rate change benefits borrowers and businesses while maintaining flexibility for future policy adjustments.

The repo rate is the interest rate at which the RBI lends money to banks. When the central bank lowers this rate, banks can borrow funds at a lower cost. However, it also leads to a drop in deposit rates,